Futures Decline Amid Fed Uncertainty

Wednesday, 29 May 2013 | 8:52 AM ETCNBC.com

SHARES

Stock index futures were lower Wednesday as investors speculated that strong economic data on home prices and consumer confidence could prompt the Federal Reserve to retreat from its stimulus program earlier than expected.

The Dow closed at another record high on Tuesday, the first day of trade following a long holiday weekend.

"We expect residential investment to add to GDP growth in the coming quarters. We also expect rising real estate wealth to support household balance sheets and underpin consumption, helping the broader economy to offset a substantial fiscal drag in 2013," Barclays analysts said in a note to clients.

The OECD, in its latest economic outlook released early on Wednesday, said the United States would drive global growth, projecting an expansion in GDP of 1.9 percent in 2013 and 2.8 percent in 2014.

But the OECD also cuts its global growth forecast for this year to 3.1 percent from 3.4 percent previously.

On the economic front, mortgage rates jumped to their highest level in a year last week, drying up demand for home refinancings, amid worries the Federal Reserve may begin to slow its stimulus efforts, according to the Mortgage Bankers Association.

The Treasury is scheduled to auction $35 billion in 5-year notes with the results available shortly after 1pm ET.